QuadrigaCX Paralyzed As CIBC Freezes Its Accounts

Canada-based cryptocurrency exchange, QuadrigaCX, has cried foul over a legal tussle with the CIBC; Canadian Imperial Bank of Commerce. CryptoBlockWire is gathering that some CA$28M (approx. $21.6M USD) is the bone of contention. Trouble, however, started in January 2018 when the bank froze some accounts which QuadrigaCX’s payment processor opened. The CIBC claims that they are unable to determine who the real owners of the accounts are. A facts check shows that QuadrigaCX’s processors, Costodian Inc., opened the accounts. Though, the bank insists that it cannot ascertain if QuadrigaCX owns them, or the depositors who regularly lodge funds into them do.

CIBC Files a Case against QuadrigaCX

However, QuadrigaCX maintains that it truly owns the funds in the accounts which Costodian Inc. opened. Despite all the efforts to convince the bank that QuadrigaCX owns the funds, CIBC says the exchange cannot substantiate its claims. The bank instituted a legal action against the exchange, counting on a Vancouver court to allow it to freeze the multiple accounts. On the other hand, the beleaguered exchange maintains that the accounts belong to them. The exchange adds that its payment processors and some other 388 individuals, who have all been dragged into the legal saga, own the frozen accounts.